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For case study Bank Alfallah was chosen.



Bank Al-Falah Limited was incorporated on June 21st, 1997 as a public limited company under
the Companies Ordinance 1984. Its banking operations commenced from November 1st, 1997.
The bank is engaged in commercial banking and related services as defined in the Banking
companies ordinance, 1962. The Bank is currently operating through 104 branches in 36 cities,
with the registered office at B.A.Building, I.I.Chundrigar, Karachi.

Since its inception, as the new identity of H.C.E.B after the privatization in 1997, the
management of the bank has implemented strategies and policies to carve a distinct position for
the bank in the market place.

Strengthened with the banking of the Abu Dhabi Group and driven by the strategic goals set
out by its board of management, the Bank has invested in revolutionary technology to
have an extensive range of products and services. This facilitates our commitment to a
culture of innovation and seeks out synergies with clients and service providers to ensure
uninterrupted services to its customers. We perceive the requirements of our customers
and match them with quality products and service solutions. During the past five years, we
have emerged as one of the foremost financial institution in the region endeavoring to meet the
needs of tomorrow today.

Bank Al-Falah limited was incorporated on June 21, 1992 as a public limited Companies
Ordinance 1984 and commenced banking operation from Nov 1, 1992. The bank is growing
rapidly in its equity & asset base due to strategic managerial policies and assistance of Abu
Dhabi Group.

The strength and standing of Abu Dhabi Group, principal owners of BAL have helped Bank Al-
Falah Limited launch high quality consumer and corporate banking operation in Pakistan. Bank
Al-Falah Ltd has embarked upon a rapid expansion program to make sure that our services reach
more and more peoples. We are headed towards an optimum sized network reaching major urban
centers in Pakistan and soon to go International.

ATM machines locations have been increased inmost of the branches but still need to expand
their network in every branch and collaboration with other commercial banks in ATM services.
It is also introducing a new; more advanced and latest funds settlement computerized SWIFT
program in late 2002. Which is a strong point of BAL that makes it a sophisticated and highly
technological oriented bank?
egarding the investment and deposits portfolios BAL is playing dynamic strategies to diversity
their funds in more productive assets like; investment in T. Bills and export related concerns,
which are producing healthy profits. But all this goes to the staff of Bank Al-Falah Ltd bank that
is more proficient and good risk managers.

BAL has numerous opportunities in future to increase the volume of business because it has
options to tap the market of its own peer units (Al-Falah Car Financing, Al-Falah Visa, & also
Al-Falah Home Finance etc) beside BAL has strong assets base, it can diversify its funds in more
lending & investment opportunities live; Petroleum concerns, financial derivatives business
through treasury.

In nutshell, BAL has been performing very well since its birth. All financial institutions of
Pakistan regarding commercial banking concerns give Bank Al-Falah Ltd as a leading bank in
domestic sector title. Through SWOT analysis we have found that BAL has competitive edge
over other peer banks and it wants to tap the prospects of foreign banks to achieve long-term
objectives of the bank it ought to have astute, well-designed, comprehensive and dynamic frame
of undertaking which might be established after diagnosing the conditions of country and
drawbacks due to which it lags behind.


The board of directors has the authority in guiding Bank affairs and in making general policies.
Some directors are the personnel of the Bank Al-Falah Limited follows.

H.E. Sheikh Hamdan Bin Mubarak Al Nahayan Chairman

Mr. Abdulla Nasser Hawalileel Al-Mansoori Director
Mr. Abdull Khalil Al Mutawa Director
Mr.Khalid Mana Saeed Al Otaiba Director
Mr. Ikram Ul-Majeed Sehgal Director
Mr. Nadeem Iqbal Sheikh Director
Mr. Sirajuddin Aziz Director & CEO


Bank Alfalah has a top quality management which is listed as follows.

Mr. Sirajuddin Aziz Chief Executive Officer

Mr. Parvez A. Shahid Co-Chairman Central Management Committee
Mr. Shakil Sadiq Chief Operating Officer
Mr. Arfa Waheed Malik Group Head Corporate & Investment Banking
Mr. Ijaz Farooq Group Head Islamic Banking
Mr. Adil ashid Group Head Consumer Finance
Mr. Nadeem Ul Haq Group Head Operations
Mr. Mohammad Yousuf Group Head Credit & Collections
Mr. Bakhtiar Khawaja Group Head Training & Development
Mr. A. Wahid Dada  Group Head Commercial Banking
Mr. Hamid Ashraf GM Legal Affairs & Company Secretary
Mr. Zahid Ali H. Jamall Chief Financial Officer
Mr. Mohammad Iqbal Saifee Group Head Audit & Inspection
Mr. Talib izvi Group Head Priority Banking & Wealth

Mr. Tariq Mir GM International Business

Mr. Ather Shehab Executive Incharge Establishment & Administration

Mr. Mahmood Ashraf General ManagerCredit Monitoring

MrFalak Sher Chief Compliance Officer
Mr.Imtiaz Ahmad Sheikh GM Information Technology
Mr. M.Mudassar Aqil GMHuman esource & Quality Assurance
Mr.Haroon Khalid GM isk Management


  To be the premier organization operating locally & internationality that provides the
complete range of financial services to all segments under one roof.

  To develop & deliver the most innovative products, manage customer experience,
deliver quality services that contributes to brand strength, establishes a competitive advantage
and enhances profitability, thus providing value to the stakeholders of the bank.


PACA, a premier rating agency of the country, has rated the bank µAA¶ (double A), Entity
ating for long term and A1+ (A one plus) for the short term. These ratings denote a very low
expectation of credit risk, strong capacity for timely payment of financial commitments in the
long term and by highest capacity for timely repayment in the short term, respectively. The
ratings of first and second and third unsecured listed and subordinated TFC issues of PK 650
million, PK 1,250 million and s.1,325 million have been maintained at AA- (Double A

   !  " 

The Bank is fully aware that the branch network has direct implications on the services that it
provides to its customers. We offer services through a network of 160 branches and 60 state of
the art ATM machines

# $ Conventional Branches
#!$ Islamic Banking Branches
#$ Overseas Branches
#$ ATM Machines

As far as Bank Al-Falah Ltd is concerned, it is one of the top in all-domestic commercial banks
in Pakistan. The rapid increase in branch network shows the Bank¶s performance within seven
years, which is worth considerable.

However, this branch works with mostly all banking operations, which are normally performed
by every commercial bank. It has basically following departments under which it operates all
functions of bank diligently.

These are mainly ; account opening department ; remittances department ;clearing department ;
accounts department ; warid telecom department ; cash department; car financing department ;
credit department ; credit card department ; trade financing department.


# $
 !  e.g. Deposits, emittances, Foreign trade, Lockers.

#!$c  !   e.g. Credit Cards, Auto loans, Home loans, Consumer durables,


  e.g. Telephone banking, ATMs, Online banking

#$c%  !   e.g. Short/Long Term finance, Trade finance, Structured finance.

# $  &'( )   e.g. Money market, Forex market, Investments, Government

securities, Correspondent banking.


The bank is currently operating through more than 274 branches domestically and an
international presence in Afghanistan, Bangladesh and Bahrain, with the registered office at
B.A.Building, I.I.Chundrigar, Karachi. Some of the main branches are located in all of the major
citiesincluding: Chakwal, Hyderabad, Lahore, Kasur, Islamabad, Gawadar, Peshawar,Faisalabad,
Quetta, D.I.Khan, awalpindi, Sargodha, Sheikhupura, Sukkur, Sialkot, Multan, Murree, Attock
District, Gujranwala, Pirmahal, Mirpur Khas etc.


# $ Official website of Bank Alfalah

#!$ Bank Alfalah Bangladesh

#$ Job Site for Bank Alfalah
The bank is currently operating through more than 321 branches domestically and an
international presence in Afghanistan, Bangladesh and Bahrain, with the registered office at
B.A.Building, I.I.Chundrigar, Karachi. Some of the main branches are located in all of the major
cities including: Hyderabad, Lahore, Kasur, Islamabad, Gawadar, Peshawar, Faisalabad, Quetta,
D.I.Khan, awalpindi, Sargodha, Sukkur, Sialkot, Multan,Dera Ghazi Khan, Murree, Attock
District, Gujranwala, Pirmahal, Mirpur Khas, Mandi Bahauddin etc.

c   & %% +


Bank Alfalah has emerged as one of the leading commercial bank in the financial sector of
Pakistan. Bank has made significant contribution in building and strengthening both the
corporate and retail banking in Pakistan. Most of its share are owned by a consortium of Abu
Dhabi after the debacle of BCCI, the Ministry of finance acquired its three branches and Habib
Credit and Exchange Bank was incorporate on June 21st, 1992 as Public Limited Company
under the companies ordinance4 1984, and commenced banking operation from Nov. 01st 1992.
It is engaged in commercial banking and related service as defined in the banking companies
ordinance, 1962.

Following the privatization in July, 1997 Habib Credit and Exchange Bank, assumed the new
identity of Bank Alfalah on February 25, 1998 and with this a challenge was launched the
challenge to transform this bank into a highly professional most efficient and service oriented

Prioritizing its product portfolio in line with consumer needs and wants the bank is committed to
develop product that give more value to its customer be it is a simple bank account or complex
financial of a major project designing product. Portfolio in response to customers preferences
Bank¶s product like oyal Profit, oyal Patriot and oyal Custodial are prime examples of
quality and innovation providing timely banking opportunities to its customer.

Assessment of the needs and wants of its customer is an on going process at bank Alfalah which
help it to continually develop new product and services. Some of our new products ALFALAH
To continuously offer courteous professional and advanced banking solution banks team has
recently been energized by going through training programs with a focus on information
technology with a team of talented services dedicated professional bankers. Bank Alfalah
Limited commits all its energies resources and time to cater to all banking and financial needs of

To make banking solutions accessible to make and more people. Bank Alfalah Limited has
embraced upon a rapid expansion program. Aiming to provide networking that makes its services
available to any of its customer¶s in all the major urban centre of Pakistan with a view to go
international with its key indicators of progress already soaring to new heights the bank is
committed to put all its energies resources and time to bring higher value and satisfaction of its
customers employees and share holder.

Technological developments are opening up new vistas of solutions of distributing traditional

financial product. Concurrently rapid change in customer preferences has related in a major shift
from manual to automated services of the bank. Information technology today is the key of the
bank to sustain and succeed into the corporate world. Therefore, during the recent past, Bank
Alfalah Limited made heavy investment to wards exchanging its capabilities in the area of
automation and technology. Bank Alfalah Limited is well positioned to meet client needs with
improved competitive advantages. Bank Alfalah Limited is on the way of expansion of its
business and branches network presently, there are 295 branches of Bank Alfalah Limited spread
all over the Pakistan and 45 still in pipeline to covering major business centers and principle

-+ &

Here we have applied this very useful technique to identify the strengths, weaknesses,
opportunities and threats of Bank Al-Falah.

# $  

O Strong Financial Position :- As we can see in the financial statements of

the bank, the financial position of the organization is very sound and its
profitability is in increasing. The Earning per share has been increased on
a rate of about 50%, which is a very positive sign.
O Highly Qualified Employees:- The bank has highly qualified and skilled
workforce and it has succeeded to attract the best banking professionals
from across the country due to its growing pace and sound reputation.
O Conducive Environment :- The management of the bank is very much
concerned with the development of and improvement of the working
environment. The bank has state of the art and purpose built branches
where all the modern technologies are provided to get the efficiency of the
workforce and the customer satisfaction.
O Govt. Support and Encouragement :- As the owners of the bank belong to
UAE and the type of their investment in Pakistan is a foreign investment,
the govt. is fully supporting the bank management due to its policy to
maximize the foreign investment in the country, to get the economic
O Fastest Growing Financial Institution  Due to its successful business
policies and the strong financial position the bank has achieved the
reputation of fastest growing financial institution in the country. It has
greatly increased the customer¶s confidence in the bank.
O Huge Expansion Plan :- Due to its strong financial position the bank has
undergone a huge expansion plan to compete with the existing bank all
over the country and with the passage of time the branch network is
expanding at a very good pace.
O Young and Energetic Workforce  As the bank is a newer one in the
country, the bank has an advantage over its competitors because the
majority of its workforce is young and not very much over aged. Thus the
bank is getting maximum out put from its young and energetic workforce
by spending comparatively less on their remunerations.
O Islamic Banking Division  The bank is one of the pioneers of the
commercial banks who have started the Islamic Banking along with their
conventional banking. The bank has a separate network of its Islamic
Banking Division which has 16 branches across the country and this
network is also expanding at a very good pace.

#!$ -  

O Waiver of charges :- Currently the middle management of bank Al-Falah

is the big reason for waiver of charges. Bank Al-Falah loosing a lot of its
income likes (Cheque book charge, online charges, statement charges, and
other things) because of management. This is a weakness of bank Al-
O Inexperienced workforce  As the majority of the workforce consists of
young professional, they lack in their experience. And sometimes lack of
experience becomes a hurdle while serving to the customers. It is the point
where they feel difficulty while competing the other bank, which have a
very experienced workforce.
O Over work Load on Employees :- It was observed in the branch that as
compared to huge business the bank is dealing in, the no. of employees is
lesser and thus there is an increased workload on the employees. Due to
this the efficiency of the employees is reduced.

#$ +%%  

O apidly Growing Economy :- At present the Pakistan¶s Economy is

growing on a very fast pace. The rapid growth of economy has resulted in
the increase in the growth rate of all economic sectors especially in the
banking sector which is growing at a fastest speed than ever and in future
the growth is expected to increase even a higher rate.
O Increased Interest ates :- The SBP has revised the interest policy and the
interest rates have been linked with the KIBO rates. Due to which the
banks interest rate has been substantially increased which will greatly
increase the banks¶ profitability.
O Mega Projects Financing :- As the increase in overall business activity in
the country, the investors are launching various types of Mega Projects
especially in housing and textile the bank has a great opportunity to
finance these projects at very profitable term.
O Huge Demand for Consumer Financing :- The increase in per capita
income and overall economy has resulted into a great demand for the
consumer financing especially for home finance and car financing and it is
said that this trend will increase more in future. The bank can earn a lot by
focusing on its consumer financing sections.
O Merger with UBL :- After the privatization of United Bank Limitedï the
management of the BAL has purchased the majority shares of the UBL,
and it is planning to merge these two banks. As UBL is the second largest
bank in the country, this merger can make the bank the largest bank of the
O Growing Trend of Islamic BankingThere is a very good growth trend
in the Islamic banking in the country and in the world as well. BAL has
the advantage of having full fledged Islamic Banking network and the
growth in this particular field can be very fruitful for the bank.
O Spending Practices of Mass :- As the Pakistani¶s are known for their
extravagant practices, and to fulfill their funds requirements they don¶t
hesitate from getting loans from banks. Thus there is a very good scope for
the bank to run successful business in such circumstances.


O Uncertainty of Economy :- Although the economy is growing at a good

pace, but there are many factors which results in the uncertain position of
the economy. Such as political uncertainty, WTO, increase in poverty etc.
etc. As a result there are permanent threats of future risks and losses for
the bank.
O High ate of Inflation :- The inflation rate of the country has gone above
the 10%. This can result into an unfavorable situation for the bank. And
especially when the ownership of the bank is UAE based, the net spread
for them can substantially decrease.
O Trend of Mergers :- There is a trend of mergers among the banks to
become prominent in the market and to get the maximum market share.
This trend can result into the union of some leading banks which can give
tough time to the bank and it will become difficult for the bank to compete
with them.
O Privatization of Banks :- Due to its privatization policy, the govt. is
privatizing the state owned banks. The change in management may result
in the increase in the efficiency and productivity of the banks. Thus it can
become a threat for the bank.
O isk of Defaults :- As discussed earlier that there is a trend of launching
mega projects in the country. And every one is involved in this trend
without taking any measure for the successfulness of these projects. This
can result into the failure of this project which can make it difficult for the
banks to recover their funds from these defaulters.